While reporting issuers and registrants generally were required
to transition as of January 1, 2011, the
transition date for investment funds was deferred in order to
allow for the International Accounting Standards Board's
(IASB's) exception from consolidation for investment companies
to be in place prior to the transition. Without this
exception, investment funds would have been required to consolidate
investments that they controlled, resulting on potentially
confusing disclosure given that their portfolios were historically
shown at fair value. This issue was resolved under the IASB's
Investment Entities(Amendments to IFRS 10, IFRS 12 and IAS 27)
issued on October 31, 2012, which provides the required
exception. According to the CSA, the definition of
"investment entity" in IFRS 10 should capture, and
therefore resolve the issue for, most investment funds. They
do acknowledge, however, that it is possible that it may not
capture all of them.
Investment funds will therefore be required to transition to
IFRS for financial years beginning on or after January 1, 2014.
Amendments have also been made to cover terminology differences
between Canadian GAAP and IFRS and to reflect changes to financial
statement presentation and will affect NI 81-106, NI 81-101, NI 81-102, NI 81-104 and the investment fund form of
prospectus under Form 41-101F2.
The amendments include non-material changes made to the
initial proposal published in October 2009 to reflect comments
received from stakeholders. Assuming Ministerial approvals, the
amendments come into force on January 1, 2014.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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